Danny Salas

Chico, CA Interest Rates Market Report – Economic Influences – April 22, 2010

Lock, NO FLOAT, No LOCK, NO...float

Happy Earth Day!

Treasury Auction Announcement

The United States Treasury will sell $11 Billion in 5-yr TIPS on Monday.  Also, $44 Billion in 2-Year Notes on Tuesday, $42 Billion in 5-Year Notes on Wednesday, and $32 Billion in 7-Year Notes on Thursday.  This Auction could be a nice place for international investors to place their money since Moody’s downgraded Greece’s Credit Status.

Greece VIII

There is even worse news coming out of Greece, today.  Eurostat, a European Statistic Agency, is reporting that Greece’s 2009 Books were worse than previously reported.  Not only that, but that there could be further revisions to their numbers…and I don’t think it will be positive revisions.

Obama Discusses Reform

President Barack Obama will be speaking to Wall Street, in New York City, today, in regards to financial reform.  It will be interesting to see how his speech, might effect the trading day.

Economic Info

Finally, some economic reports to share with you, this week.  Initial Jobless Claims were lower than last week, however, still higher than expectations at 456,000 new claims.  On a sadder note, 5.34 Million people are claiming Emergency Unemployment Compensation (EUC).  That’s 500,000 fewer claims than previously reported, however, don’t forget the Congressman from Kansas that held up Congress for days objecting to any further unemployment claims to be paid to anyone…so now that that’s rectified, we’ll see more Emergency Unemployment Compensation Claims again.

Hot PPI – But Cool Market Reaction

The Producer Price Index roared in at a 0.7% gain for March.  The expected reading was 0.5%, however, this left the year-over-year PPI at 6.0%.  This is a gauge on inflation, at the wholesale level.  Remember, the Fed wants to see inflation levels between 1.0 & 2.0%, so 6.0% is ridiculous.  Let’s break this down, however; wholesale food prices spike to a twenty-six (yes, 26) year high of 2.5%, and the Core PPI, which removes volatile food and energy costs, remained at a cool 0.1% and the Core year-over-year PPI was 0.9%.  So even though the information seemed hot, it was actually, cool.

Existing Home Sales

5.35 Million homes sold, in March, and the inventory of unsold homes lowered to 8 months, as opposed to the 8.6 months, just one month before.  The Tax Credit, has certainly a lot to do with this, however, it will be interesting to watch the housing numbers, once the tax credit expires, in just eight days.

It's Risky But I'd Float

Locking Advice

It’s a bumpy ride out there.  However, if you can stomach the roller coaster, I still think that Greece’s troubles, coupled with a down-trend that the Stock Market is poised for, will result in lower rates, starting next week.  Keep your fingers crossed!

Related Must Reads

The Beginning of Greece’s Troubles
The REAL Jobs Numbers
Senate Approves Tax Credit Extension

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This entry was posted on Thursday, April 22nd, 2010 at 9:27 am and is filed under Chico Home Loans, Home Buying, Interest Rates, Weekly Market Report. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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